American Airlines and Qantas win tentative US approval for joint venture

American Airlines Group and Qantas Airways have been given the US government’s tentative approval to operate a joint venture after a prior effort was rejected in 2016. The US DoT Monday issued an order tentatively approving the joint business agreement and tentatively granting antitrust immunity to the airlines covering international service. An application for a joint venture covering the United States, Australia and New Zealand was rejected by former President Barack Obama’s administration. The deal would allow the airlines to coordinate their planning, pricing, sales and frequent flyer programs, with new options and customer service improvements. The airlines planned up to three new routes within the first two years and increased capacity on existing routes, the department said. American Airlines said a final decision is expected in the coming weeks. “The joint business will also create additional jobs at our respective companies and in the industries we serve,” said American Chairman and CEO Doug Parker. The department will require the airlines perform a self-assessment of the joint venture’s impact on competition seven years after it takes effect and report their findings to the government, which could subsequently take action. <br/>